1) Typically on a 3" drop spindle you will need to grind the bottom of the control arm for clearance. You most likely will have to grind the caliper for the wheel clearance.
2) 4" of drop is about the limit if you ever plan to carry any type of load. If you are doing a flip you, you have to notch the frame.
3) It really depends on what you think "too low to the pavement" is. The more the drop, the closer you get. With a 5/7, the control arms will be about 4" off the ground depending on the height of the tire. If you want to check, you can just measure your current height of the truck at the control arm and subtact the amount of drop you want. Keep in mind that the amount of drop from a spring will not be exactly the amount at the lowest point of the control arm since it is change more at the balljoint. This should get you an idea.
Chris Lucas
www.73-87chevytrucks.com
www.captkaoscustoms.com
Project Su
Jimmy 2WD Project